I am looking to see what other bankers are using to calculate ALLL. Are you using vendor software or an inhouse method of calculation? pmatula@fnbeaglelake.com

We use a manual calculation. We break each product category out and our loss experience with that category as a percentage. As the product category grows so does the dollar amount of the reserve. We also review the percentages annually. In addition, any adversely rated loan we estimate any possible loss associated with those and add that to the reserve. We recalculate quarterly.

I just sent you an email with a vendor name I used at my prior bank.

Kaybee, what prompted your decision to have a vendor perform this function? What size is your institution?

Sorry, forgot to log in.

The bank is a little less than $3Bn. They started using the software when they were much smaller. It was inexpensive, performed migration analysis, allows adjustments for changing economic conditions, etc.

The regulator had "suggested" that they beef up their analysis from a home grown process.

Send me your email and I can send you the vendor name. (I am not connected, just familiar with the product.)